Our recent report of the give away of Crowdcube funded MyShowcase to Miroma Group has now been confirmed. A communication from Crowdcube, who are the nominee account holders in this mess, states either agree to this or the business will close. And you have 4 days to take legal advice and decide.
Investors in MyShowcase via Crowdcube will get 12.5% of the new Myshowcase, whereas they bought 13.7% via Crowdcube for £1m. These new shares have no rights. Miroma will get all the MyShowcase shares for nothing. Miroma have recently signed an agreement with Reach4Entertainmant in the US which may help the business.
As usual, the poor investors that believed in Crowdcube, have been royally hung out to dry whilst Nancy and her cronies have been rescued from a sunken ship; at their expense. Whilst the communication goes on to say that this is unlikely to effect investors EIS reliefs - as the deal is at 'arms length', we feel these are rather short arms. Given the fact that the founding CEO of Miroma was a major investor in MyShowcase. In fact if you were really cynical you might think this was all a set up.
We know the FCA are hopeless but are they really that stupid?
Rob - I see you removed your blog recommending we all invest in Appetise - ROFLMOL
ReplyDeleteDamage limitation was it.......
The FCA works on complaints.
ReplyDeleteWhile Crowdcube are loosing 80 Million per year of investors money and doing a pretty awful job, not enough investors have so far, based on the fact they are not under investigation complained.
The most obvious thing to complain about is Misleading Financial Promotions: I was attracted to Crowdcube based on the their claim that this company has "Raised" this amount.
In fact, saying it was raised was a direct lie. The company has non enforcable pledges for this amount, and thus the use of the word raised is complete mis-representation.
Their lawyers will argue that this misuse of the word raised, is explained and detailed in their terms and conditions and Crowdcube is fully lawyer'd up.
FCA, will then say, well this is not fit a proper behaviour, but by then, by the time they are investigating, they will have uncovered all the other things CC has done wrong and probably alot that their raising companies have also.
How this crazy experiment from two guys with no financial experience, very little business experience in any secto, taking no view on the market but just relying on the wisdom on the easily manipulated crowd, was ever supposed to succeed (make money for the clients) is beyond me.
Its 80 Million per year to keep Crowdcube open. 80 Million in the river.